Against the background of the development of the peace process between Azerbaijan and Armenia, the expansion of trade relations between the two countries is also expected. Currently, fuel products are exported from Azerbaijan to Armenia. At the same time, Azerbaijani businessmen visited Armenia some time ago. Prime Minister Nikol Pashinyan, confirming that our businessmen were in Armenia, stated that cooperation in the direction of export and import of electricity with Azerbaijan is possible.
It is interesting how attractive the Armenian market will be for Azerbaijani businessmen after the final peace agreement?
Vugar Bayramov, a member of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis, told Modern.az that the restoration of trade relations between Azerbaijan and Armenia has already been realized:
“Azerbaijan is already exporting fuel products to Armenia. In general, after the peace agreement signed in Washington, Azerbaijan, remaining committed to the peace agenda, exported fuel products worth more than 117 million dollars to Armenia. All restrictions on cargo transported from Azerbaijan to Armenia have been removed. This once again shows Azerbaijan's commitment to the peace agenda.”
According to the deputy, initial estimates show that import-export operations for 38 types of products are possible between the two countries:
“This means an annual trade turnover of 300 million dollars. As for specific products, this includes food, foodstuffs and industrial products, as well as a number of raw materials. It should be taken into account that Azerbaijan and Armenia specialize in the agricultural sector. At the same time, there is a demand for some industrial products in both countries. It is also possible to import certain products produced in Armenia to Azerbaijan.”
Vugar Bayramov noted that discussions on the restoration of trade relations are expected to affect the structure of trade between the two countries in the near future:
“In the near future, we may witness the export of not only fuel products, but also other products to Armenia, as well as the import of a number of industrial products from Armenia to Azerbaijan.”
Economist Natiq Jafarli, on the other hand, stated that trade relations between Azerbaijan and Armenia are developing step by step, and Azerbaijan has more advantages in this process:
“In terms of meeting Armenia's demand for energy carriers, Azerbaijan is becoming a serious player in the fuel market through its state company. Since the beginning of the year, we have exported more than 17 million dollars to Armenia. However, we are not yet buying goods from Armenia.”
According to him, one of the main reasons for not importing from Armenia is that the necessary infrastructure has not yet been fully formed:
“Armenia offers agricultural products. For this, there must be relations, contracts and bank transfers between businessmen. Infrastructure support should be provided for the participation of private companies here.”
The economist emphasized that although the Armenian market is small for Azerbaijan, it is of interest in terms of logistics:
“Although the Armenian market is small for Azerbaijan, it is naturally of interest. Although it is a small market, cheap logistics are favorable for Azerbaijan. The more economic influence we have on Armenia, the more steps will be taken towards the normalization of relations.”
Natiq Jafarli believes that in the initial stage, interbank relations should be formed between the two countries, money transfers should be facilitated, and issues related to the insurance of trade operations should be resolved:
“If we buy goods from Armenia, who will bear the responsibility? These issues must be resolved. Cooperation in the fields of electricity, oil products and mining can be carried out more easily. State companies cooperate more here. State companies have more serious opportunities to fulfill their contractual obligations.”
